Fiat has reported today that net income has more than doubled in the first quarter of this year, thanks mainly to growth in its automotive division.
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According to Associated Press net income totaled EUR358m, up from EUR138m a year ago.
AFX News reported that the results exceeded analysts’ expectation. Their research had found that analysts were forecasting net income in the range of EUR251m and EUR320m.
Revenues rose nine percent to EUR13.7bn (US$18.6bn). Automotive revenues were up 11% to EUR 6.3bn, up and truck revenues were up 20% to EUR2.5bn.
Operating profit climbed to EUR595m up from EUR323m a year ago. Analyst expectations were for Q1 operating profit in the range of EUR448m to EUR512m.
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By GlobalDataAutomotive division operating profit rose from EUR57m to EUR192m.
Banca IMI analyst Sabine Blumel said in a research note:
“Management indicates that the new C segment Bravo, which has so far been introduced only in Italy (February) and in France (March) had barely an impact on the division’s performance, with 11k units sold in 1Q07. We believe that a reported 28.5% yoy increase in light commercial vehicle (LCV) sales to 94.1 k units, driven by the new LCV Ducato, contributed considerably to the divisional margin improvement as we estimate that LCVs is FA’s most profitable business segment. As expected marketing costs and R&D increased, while price and mix improved considerably yoy.”
